Crypto
Bitcoin Funding Rate Signals Bullish Recovery
CryptoQuant analyst Darkfost has identified a potential bullish signal in Bitcoin's funding rate. The current reading is similar to those seen before significant price surges in September 2024 and December 2022.
The funding rate, which measures the difference between long and short positions on exchanges, was negative from March to May due to accumulated short positions. This followed a correction of over 50% for Bitcoin during that period.
The subsequent rebound in May saw BTC rise to $82,000. Darkfost notes that pessimistic sentiment has reached its peak, leaving room for a bullish recovery in the coming months.